Elon Musk’s purchase of the former Twitter Inc, valued at $44 billion, has experienced a significant depreciation in its worth. According to disclosures from Fidelity, as reported by Axios, the current value of ‘X’ is now less than one-third of the initial purchase price.
Fidelity reported that X has seen a 71% decrease in its value since Musk’s acquisition in late 2022.
The latest portfolio update for Fidelity’s Blue Chip Growth Fund revealed an additional 11% reduction in the valuation of its holdings in X by the end of November.
The report indicated a continuation of markdowns as Fidelity assessed the value of the privately held, ad-funded company, which faced challenges in attracting advertisers in 2023.
Following Elon Musk’s acquisition of Twitter in late October 2022, a series of sudden transformations ensued. These changes ranged from significant layoffs and the closure of international offices to a complete overhaul of the platform’s moderation policies and verification system.
The turmoil dissuaded advertisers, and Bloomberg News reported last month that the estimated ad sales revenue for 2023 is expected to be $2.5 billion, significantly lower than the previous quarterly rate of approximately $1 billion.
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